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Learn the differences between a POS system versus a cash register and how to determine which is better for your small business.
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Choosing the right way to ring up sales can be tricky — especially when you’re weighing the cost of a modern POS system against a traditional cash register.
In this guide, we’ll break down the key differences between POS systems and cash registers, so you can decide which option makes the most sense for your small business.
Table of Contents
Here’s a quick look at how traditional cash registers compare to modern POS systems.
| Category | Cash Register | POS System |
|---|---|---|
| Pricing | One-time purchase, usually $100–$1,500+. No monthly fees. | Software starts around $0/month; advanced plans up to $100+. Hardware costs range from free readers to $1,000+ setups. |
| Payment Methods | Accepts cash only. Separate hardware required for cards. | Accepts cash, credit/debit cards, and contactless payments like Apple Pay |
| Reporting & Analytics | Limited daily sales totals | Advanced sales, employee, and inventory reports |
| Features | Basic payment collection only | Includes inventory tracking, employee management, loyalty programs, and more |
| Integrations | No integrations | Syncs with tools like accounting, payroll, and eCommerce |
| Ease of Use | Simple, minimal training required. | Slightly more complex but often includes built-in tutorials and customer support |
A cash register may be a good fit for a small, cash-only business that just needs to record payments quickly and affordably.
A POS system is ideal if you want to accept multiple payment types, track sales data, and manage customers or inventory. The added functionality often justifies the higher upfront or monthly cost.
Cash registers are stationary by design — they stay in one spot at your counter. Modern POS systems, however, are built for mobility. Many run on tablets, smartphones, or portable terminals, letting you check out customers anywhere in your store or on the go.
To learn more about mobile checkout options, check out our guide to mPOS systems and software.
A POS system is best for businesses that want to track performance, manage inventory, and accept multiple payment types.
Choose a POS system if you:
Modern POS systems include tools for:
Once you’ve decided which features matter most, pricing will depend on your setup and business size
Many small businesses can start with free POS software (like Square) and upgrade later. Expect to pay more as you add tools such as customer displays, barcode scanners, or kitchen display systems. To save money, look for bundled hardware deals or providers that offer financing.
Avoid long-term contracts until you’ve tested the software with a free trial or month-to-month plan.
A cash register is best for small or cash-only businesses that just need quick, simple checkouts. Choose a cash register if you:
Cash registers handle essential checkout functions and can include:
A basic cash register starts at around $100 – $300.
More advanced touchscreen models can cost up to $1,500, but still lack software-based tools like analytics or inventory management.
Sometimes, the best setup isn’t one or the other — it’s both.
Many modern POS providers offer POS–cash register combinations that blend the traditional drawer-and-receipt setup with today’s software features.
At a minimum, these bundles usually include a cash drawer, tablet or touchscreen display, and receipt printer — giving you the familiar feel of a cash register with the flexibility of POS software.
Here are a few examples:
| Provider | Hardware Kit | What’s Included |
|---|---|---|
| Square | Square Register Kit | Square Register, cash drawer, receipt printer, and starter paper roll |
| Clover | Station Solo Kit | 14″ touchscreen, cash drawer, and receipt printer |
| Lightspeed Retail | iPad or Desktop Hardware Kit | iPad stand, Bluetooth or USB scanner, receipt printer, and cash drawer |
These hybrid systems give you the durability and simplicity of a traditional register with all the advantages of a modern POS — like detailed reporting, inventory tracking, and digital payments.
For help deciding what hardware you actually need (and what you can skip), check out our complete guide to POS hardware.
If your business primarily accepts cash payments, carries limited inventory, or has a small budget, a cash register can still get the job done. It’s simple, affordable, and easy to use.
However, if you want to track both cash and card payments, view detailed reports, or manage customers and inventory in one place, a POS system is the better long-term investment.
Yes, a POS system comes with higher upfront or monthly costs, but the added functionality and efficiency often pay for themselves over time. And with plenty of affordable or even free POS options available, you don’t have to sacrifice features to stay within budget.
Get Your Free Credit Card Reader
Square  |
|---|
Square is an industry-leading point-of-sale and payment processing provider. Sign up for a free account and get a complimentary card reader for use with Square POS. Start For Free.
Get Your Free Credit Card Reader
Square |
|---|
Square is an industry-leading point-of-sale and payment processing provider. Sign up for a free account and get a complimentary card reader for use with Square POS. Start For Free.
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Square POS is an intuitive and simple point of sale platform. It offers customizable tools and a variety of add-ons to fit your business needs and reach your goals.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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Square POS is an intuitive and simple point of sale platform. It offers customizable tools and a variety of add-ons to fit your business needs and reach your goals.
Get Started
